Konica Minolta Holdings, Inc.
September 30, 2003
Reorganization of the Konica Minolta Group Companies on October 1, 2003
TOKYO (September 30, 2003) --- Konica Minolta Holdings, Inc. (Fumio Iwai, President and CEO) and the group companies of Konica Minolta Holdings, Inc., will form a new corporate group having six business companies and two common function companies on October 1, 2003, through reorganization of business segments of Konica Minolta to maximize integration effects and synergy. Konica Minolta Holdings, Inc. will oversee the Group as a holding company, promote business portfolio management, and increase managerial transparency, to maximize corporate value.
Following the announcement of the management integration in January 2003, Konica Corporation and Minolta Co., Ltd. signed stock swap agreement in May, and through attaining approvals of stock swap agreement at the meetings of shareholders in June, integrated management on August 5, 2003. The fact that Konica and Minolta realized the integration in an extremely short term of merely 9 months from the January announcement to the reorganization on October 1, 2003, shows an example of "Speed Management", which is one of the corporate policies. Also, the basic integration scheme is finalized as scheduled through reorganization of October 1, and a new Konica Minolta Group will launch as a completely new enterprise.
Konica Minolta Group enshrines "the creation of new value" as its management philosophy with the vision to become "an Innovative corporation that continues to create inspiring products and services in the field of imaging" and "a global corporation that leads the market by advanced technologies and reliability." And its corporate message, "the essentials of imaging," represents our wish to be acknowledged as an essential company, by offering essential products, services and solutions to customers in the world of imaging. Furthermore, Konica Minolta outlined the following four points as its basic principles to accomplish these goals:
a) Obtaining a dominant position in the areas where the company can demonstrates its strength.
b) Achieving a sustainable development as well as establishing a solid financial position.
c) Creating open and fair environment with a global vision.
d) Developing the world's most advanced technologies and having the ability to come up with revolutionary ideas.
On the basis of the new business strategies, each business company will strive to become a global corporation by maximizing reorganization effects and synergy, strengthen competitiveness, and accomplish dominant position in the leading segments.
[Konica Minolta Holdings, Inc.] (HD)
1) Description of Business: Holding Company (Planning and promoting group management strategy, auditing group management, other group management and administration)
2) Head Office: Chiyoda-ku, Tokyo
3) Representatives: Fumio Iwai, President & CEO, Representative Executive Officer
Yoshikatsu Ota, Vice President, Representative Executive Officer
4) Capital: ¥37,519 million
5) Number of Shares Issued: 531,664,337
6) Closing Date: March 31
7) Number of Employees: Approximately 140
8) Major Banks: The Bank of Tokyo-Mitsubishi, Ltd., UFJ Bank Limited, Sumitomo Mitsui Banking Corporation
9) Estimated Consolidated Sales for Fiscal 2003: ¥1,142 billion
[Konica Minolta Business Technologies, Inc.] (BT)
1) Description of Business: Manufacturing, sale and related services of copiers, printers, micro- systems, facsimiles, and related supplies.
2) Head Office: Chiyoda-ku, Tokyo
3) Representative: Yoshikatsu Ota, President
4) Capital: ¥500 million
5) Shareholder: 100% owned by Konica Minolta Holdings, Inc.
6) Closing Date: March 31
7) Number of Employees: Approximately 22,000
8) Estimated Consolidated Sales for Fiscal 2003: ¥617 billion
9) Mission: As a core business of Konica Minolta Group, the Company will expand its business and generate profits as well as cash flow.
[Konica Minolta Opto, Inc.] (OT)
1) Description of Business: Manufacturing and sale of optical and related products and electronic materials
2) Head Office: Hachioji, Tokyo
3) Representative: Takashi Matsumaru, President and CEO
4) Capital: ¥500 million
5) Shareholder: 100% owned by Konica Minolta Holdings, Inc.
6) Closing Date: March 31
7) Number of Employees: Approximately 1,900
8) Estimated Consolidated Sales for Fiscal 2003: ¥108 billion
9) Mission: As a strategic business of the Konica Minolta Group, the Company is promising to become the world's strongest optical devices manufacturer
[Konica Minolta Photo Imaging, Inc.] (PI)
1) Description of Business: Manufacturing, sale and related services of consumer and commercial photographic materials, ID photos, inkjet media, and related equipment
2) Head Office: Shinjuku-ku, Tokyo
3) Representative: Hideaki Iwama, President and CEO
4) Capital: ¥500 million
5) Shareholder: 100% owned by Konica Minolta Holdings, Inc.
6) Closing Date: March 31
7) Number of Employees: Approximately 3,900
8) Estimated Consolidated Sales for Fiscal 2003: ¥166 billion
9) Mission: Restructuring a silver-halide business and transforming to a new business structure to secure profits.
[Konica Minolta Camera , Inc.] (CA)
1) Description of Business: Manufacturing, sale, and related services of photographic equipment such as digital cameras, film cameras and lenses
2) Head Office: Sakai, Osaka
3) Representative: Hiroshi Fujii, President and CEO
4) Capital: ¥500 million
5) Shareholder: 100% owned by Konica Minolta Holdings, Inc.
6) Closing Date: March 31
7) Number of Employees: Approximately 4,100
8) Estimated Consolidated Sales for Fiscal 2003: ¥161 billion
9) Mission: Expanding business by focusing on the digital still camera business.
[Konica Minolta Medical & Graphic, Inc.] (MG)
1) Description of Business: Manufacturing, sale, and related services of film and processing equipment for medical and graphic imaging
2) Head Office: Shinjuku-ku, Tokyo
3) Representative: Teruo Kawaura, President and CEO
4) Capital: ¥500 million
5) Shareholder: 100% owned by Konica Minolta Holdings, Inc.
6) Closing Date: March 31
7) Number of Employees: Approximately 2,900
8) Estimated Consolidated Sales for Fiscal 2003: ¥153 billion
9) Mission: As a stable business, the Company aims to secure profits through aggressive expansion of dry and digital products, while transforming its business structure to a profitable service-oriented one.
[Konica Minolta Sensing, Inc.] (SE)
1) Description of Business: Manufacturing and sale of instrument systems for photographic, industrial and medical industries
2) Head Office: Sakai, Osaka
3) Representative: Hiroshi Furukawa, President and CEO
4) Capital: ¥495 million
5) Shareholder: 100% owned by Konica Minolta Holdings, Inc.
6) Closing Date: March 31
7) Number of Employees: Approximately 400
8) Estimated Consolidated Sales for Fiscal 2003: ¥10.5 billion
9) Mission: Concentrating resources on the non-contact 3D measuring instruments business to secure stable profits.
[Konica Minolta Technology Center, Inc.] (TC)
1) Description of Business: Research and development, incubation of new technologies and businesses, and administration and services of intellectual properties
2) Head Office: Hino, Tokyo
3) Representative: Kaoru Onodera, President and CEO
4) Capital: ¥50 million
5) Shareholder: 100% owned by Konica Minolta Holdings, Inc.
6) Closing Date: March 31
7) Number of Employees: Approximately 800
8) Estimated Consolidated Sales for Fiscal 2003: Sales are made within the Group, so the amount is not listed.
[Konica Minolta Business Expert, Inc.] (BE)
1) Description of Business: Various management supports and indirect functions and services
2) Head Office: Hachioji, Tokyo
3) Representative: Toshiaki Ishihara, President and CEO
4) Capital: ¥495 million
5) Shareholder: 100% owned by Konica Minolta Holdings, Inc.
6) Closing Date: March 31
7) Number of Employees: Approximately 1,400
8) Estimated Consolidated Sales for Fiscal 2003: Sales are made within the Group, so the amount is not listed.
Notes:
- (1)
- The estimated amount of consolidated net sales for fiscal 2003 for each item is a simple total amount of net sales resulting from the business plan for fiscal 2003 of Konica Corporation and Minolta Co., Ltd., respectively, which were announced on May 15, 2003.
- (2)
- The net sales of Konica Minolta Holdings, Inc. amounting to ¥1,142 billion is the amount adjusted by deducting other outside sales and inter-group sales amounts from the accumulated sales of business companies amounting to ¥1,215.5 billion.
Target figures of the business companies
[Billion yen]
| FY2002Results | FY2003Forecasts | FY2005Forecasts | ||
|---|---|---|---|---|
| BT | Net sales | 594.7 | 617.0 | 700.0 |
| Operating income | 52.6 | 45.5 | 90.0 | |
| OT | Net sales | 54.1 | 108.0 | 120.0 |
| Operating income | 12.4 | 12.0 | 20.0 | |
| PI | Net sales | 163.1 | 166.0 | 150.0 |
| Operating income | 8.3 | 4.0 | 9.0 | |
| CA | Net sales | 117.6 | 161.0 | 200.0 |
| Operating income | 2.1 | 5.8 | 12.0 | |
| MG | Net sales | 117.4 | 153.0 | 140.0 |
| Operating income | 9.3 | 9.0 | 13.0 | |
| SE | Net sales | 9.7 | 10.5 | 13.0 |
| Operating income | 2.0 | 2.0 | 3.0 | |
| HD | Net sales | 30.6 | -73.5 | -23.0 |
| Operating income | -9.5 | -9.3 | 3.0 | |
| Total | Net sales | 1,087.2 | 1,142.0 | 1,300.0 |
| Operating income | 77.2 | 69.0 | 150.0 |
Exchange rates: US$=¥115, EUR=¥120
HD: Holdings and other companies including inter-company adjustments
FY2003 net sales forecasts of the business companies include inter-company sales.
The figures exclude equity method goodwill.
Cautionary Statement Regarding Forward-Looking Statements:
This press release includes forward-looking statements that reflect the plans and expectations of Konica Minolta Holdings, Inc. To the extent that statements in this press release do not relate to historical or current facts, they constitute forward-looking statements. The forward-looking statements are based on the current assumptions and beliefs of Konica Minolta Holdings, Inc. in light of the information available to it, and involve known and unknown risks and uncertainties. Potential risks and uncertainties include, but are not limited to, the ability of Konica Minolta Holdings, Inc. to integrate the operations of Konica Corporation and Minolta Co., Ltd. effectively, as well as the factors identified under "Forward-Looking Statements" of the Annual Report 2002 of Konica Corporation and "Disclaimer Regarding Forward-Looking Statements" of the Annual Report 2002 of Minolta Co., Ltd. Such risks, uncertainties and other factors may cause the actual results, performance or financial position of Konica Minolta Holdings, Inc. to differ materially from those expressed or implied in the forward-looking statements. Konica Minolta Holdings, Inc. undertakes no obligation to update publicly any forward-looking statements after the date of this press release.